Analysts raised price targets on Bajaj Auto Ltd. after the third quarter, citing better outlook for exports, increased traction for premium motorcycles and attractive valuations.
The two-wheeler maker, according to research reports of brokerages, including Investec, HSBC, can offset the commodity headwinds through modest price hikes. Also, improving product mix and recovery in three-wheelers are other positive triggers.
Bajaj Auto, in its post-earnings release, said its overall share in the domestic market has risen from 17.5% to 18.6%, and it sold record Pulsar motorcycles in the domestic and international markets. The company’s exports at 6.87 lakh units during the quarter were also the highest-ever.
The two-wheeler aims to restart bookings of electric scooter Chetak over the next two-three months. Bookings were stalled in March and had not resumed since, owing to supply-side constraints.
Bajaj Auto reported the highest-ever quarterly profit, revenue, Ebitda and turnover during the three months ended December. Its overall sales increased 8% over the year-earlier during the reported period.
Shares of Bajaj Auto gained as much as 8.4% to an all-time high of Rs 4,012.9 apiece. The stock is up for the fourth straight day.
Of the 51 analysts tracking Bajaj Auto, 34 have a ‘buy’ rating, 12 suggest a ‘hold’ and five recommend a ‘sell’. The stock crossed its Bloomberg consensus 12-month price target of Rs 3,779 apiece on Friday.